Amu Power Company Licence Revoked as Court Upholds Landmark Ruling

Amu Power Company Ltd is a special purpose vehicle formed in 2013 by Gulf Energy Ltd and Centum Investment Company Plc to develop the proposed Lamu coal power plant under Kenya’s public–private partnership framework. The project, valued at US$2 billion, was to be financed largely by Industrial and Commercial Bank of China (ICBC), with construction by China Power Global

By The Weekly Vision Reporter

Four lobby groups have welcomed a decision by the Environment and Land Court in Malindi, Kenya, which has upheld the landmark 2019 ruling by the National Environment Tribunal (NET) revoking the Environmental Impact Assessment (EIA) licence granted to Amu Power Company Ltd for the construction of a 1,050 MW coal-fired power plant in Lamu.

The case, filed in 2016 by Save Lamu, challenged the decision of the National Environmental Management Authority (NEMA) to issue the licence, arguing that it violated constitutional and environmental rights and failed to comply with Kenya’s environmental laws. Amu Power subsequently appealed the NET decision at the Environment and Land Court.

In a landmark judgment delivered on 16 October 2025, Justice Francis Njoroge upheld the NET’s ruling and dismissed the appeal in its entirety.

According to Save Lamu, Katiba Institute, Natural Justice, and deCOALonise, the verdict marks a historic victory for the people of Lamu, who have for nearly a decade defended their right to a clean and healthy environment, their cultural heritage, and their livelihoods against the threat posed by the proposed coal plant.

“The Environment and Land Court reaffirmed that public participation, environmental protection, and respect for constitutional rights cannot be overlooked in the pursuit of unsustainable energy projects. The court found that the public participation process was inadequate and failed to meaningfully include the voices of affected communities. The judgment reaffirmed the importance of the precautionary principle, emphasising that courts must not hesitate to apply it in environmental decision-making,” the lobby groups said in a joint statement.

The court found that the approval process was procedurally flawed and in violation of Articles 42 and 69 of Kenya’s 2010 Constitution, which guarantee every person the right to a clean and healthy environment and set out the State’s obligation to protect and manage natural resources sustainably.

The EIA report was also deemed deficient, particularly in addressing mitigation measures for the ash pit and in evaluating the project’s potential contribution to climate change. These omissions contravened the requirements of both the Climate Change Act and the Environmental Management and Coordination Act (EMCA).

While the Court did not examine every technical aspect of the project, it underscored that meaningful public participation is central to effective environmental governance and impact mitigation. The numerous procedural and substantive shortcomings in the public participation process rendered the EIA process fundamentally invalid.

Elizabeth Kariuki, Hub Director at Natural Justice, remarked: “This decision reinforces Kenya’s constitutional commitment to environmental justice, public participation, and the rule of law. Development must never come at the expense of people’s health, culture, or environment. This victory belongs to the people of Lamu, every fisher, woman, and youth who stood up for Lamu and for future generations. Kenya’s future should be built on clean energy, community voices, and respect for the planet we all depend on.”

Somo M. Somo, Chairperson of Save Lamu, added: “Justice for Lamu is justice for the planet. This ruling demonstrates that when communities are heard, the law protects both people and nature. We have walked this journey since 2016, and today marks a historic day that will live in our hearts for generations. This victory is not only for Lamu but for Kenya as a whole.” Emily Kinama, Head of Strategic Litigation at Katiba Institute, described the judgment as “monumental in Kenya’s environmental justice history.”

Amu Power Company Ltd is a special purpose vehicle formed in 2013 by Gulf Energy Ltd and Centum Investment Company Plc to develop the proposed Lamu coal power plant under Kenya’s public–private partnership framework. The project, valued at US$2 billion, was to be financed largely by Industrial and Commercial Bank of China (ICBC), with construction by China Power Global.

The project faced widespread opposition from environmentalists, civil society, and local communities, who argued that it would threaten Lamu’s UNESCO World Heritage Site, damage marine ecosystems, and contradict Kenya’s commitments under the Paris Climate Agreement. With this latest ruling, the coal plant proposal appears effectively halted,  marking a significant shift towards clean energy advocacy and environmental accountability in Kenya’s development planning.

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